RECOVERY PROSPECTS OF THE ECONOMIC DEVELOPMENT OF THE TERRITORIES

Abstract

The main goal of state and local development policies should be the creation of an economic system able to generate a sufficient amount of resources in the long term. The war lead to the destruction of critical infrastructure in many regions, material losses, millions of forced displacements, and demographic shifts. Traditional challenges of local governance and development in Ukraine have been augmented by new complications. In the course of the study, modern challenges for localities were analyzed and summarized. The concept of "affected territories" is proposed to be introduced into the normative regulation meaning territories or their parts that suffered from the conduct of hostilities or missile-bomb/artillery attacks. In order to make effective management decisions regarding the possibility of restoring such territories, it is necessary to develop a certain classification based on the degree of destruction and population loss (including due to evacuation/migration) and create a map of such territories. The restoration of Ukraine is the restoration of fully-fledged life in cities and villages and the formation of a new economy while taking into account new realities. The local private sector is the engine of economic activity and growth of the territory. Therefore, supporting entrepreneurship and smart investment in the development of small and medium-sized businesses must be a vital component of any recovery strategy. The article examines groups of enterprises that continued to work and develop during the war. Additional threats and risks of enterprise operation are summarized, and losses are grouped. “Losses from war” are understood as the value expression of the result of a change in the condition of objects due to a violation of their integrity or deterioration of their properties, and an increase in actual or possible socio-economic and other losses that occur during the war. It is substantiated in the research that the immediate factors in the process of restoration of territories should be working with investors, creating a favorable business environment and supporting entrepreneurial initiatives. Prospective areas of investment are summarized, taking into account modern changes in market needs. Keywords: economic recovery of the territories, relocation of enterprises, recovery plan, prospective directions of investment.